Final answer:
Option (B), which involves decreasing input by 15%, nets the largest productivity improvement, with an increase of approximately 17.65% in productivity.
Step-by-step explanation:
The question of which action nets the largest productivity improvement is essentially asking which scenario most effectively increases the ratio of output to input. To determine this, we should calculate the percentage increase in productivity for each option:(A) If you increase output by 15% without changing input, the productivity increase is 15%(B) If you decrease input by 15% without changing output, the productivity increase is 17.65% (15% of a smaller number is a larger percentage increase)(C) An increase of both output and input by 5% would not change the ratio of output to input, so the productivity remains the same(D) If you increase output by 10% and decrease input by 3%, the productivity increase is 10% + 3% + (10% of 3%) which is approximately 13.3%(E) If you decrease input by 10% and increase output by 3%, the productivity increase is 3% + 10% + (3% of 10%)
which is approximately 13.3%.The largest productivity improvement would be achieved by option B) decrease input 15%.When you decrease input, you are finding ways to produce the same output with fewer resources. This can be done through efficiency gains, process improvements, or cost reductions. By reducing input by 15%, you armaking significant changes that result in a larger productivity improvement compared to the other options.For example, if a company reduces the amount of raw materials used in production by 15% while maintaining the same level of output, it would lead to cost savings and increased efficiency, resulting in a larger productivity improvement.Therefore, the option that nets the largest productivity improvement is (B) decrease input by 15%.
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